Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

Will the Treasurer inform the House of the importance of reducing the burden of tax on hardworking Australians and the need to remove inefficient and distortionary taxes? How is the government backing Australians who are working, saving and investing to grow our economy and create more jobs?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Bonner for his question. He knows that Australians understand that we are facing difficult global circumstances and that we are transitioning our economy. They know that, as a government, it is important that we build a strong national platform for growth and jobs that backs Australians who are out there working, who are out there saving and who are out there investing.

Mr Ewen Jones interjecting—

Mr Whiteley interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Herbert has been warned. The member for Herbert will not interject again in question time, nor will the member for Braddon.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

It is true that next year the average full-time wage earner in Australia will move into the second-top tax bracket. That means they will be paying 41c in the dollar in tax. If you are on the average wage in this country next year, you will be paying 41c in the dollar in tax. That is not a system that is encouraging and backing Australians who are working, who are saving and who are investing. We know that high income taxes penalise Australians and they penalise them for the thing that we should be encouraging most, and that is for their effort.

On this side of the House, when in government this time and when in government before, we have the record of cutting taxes—to cut the burden of taxation on Australians.

Ms O'Neil interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Member for Hotham, that is your final warning.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

In 2000, when there was a new tax system, we delivered personal income tax cuts in the order of $12 billion a year—at that time the greatest in our nation's history. In 2003-04, there were further tax cuts of $10.7 billion; 2004-005, tax cuts of $14.7 billion; and 2005-06, tax cuts of $21.7 billion over four years. In the 2006-07 budget, they built on this with further reductions in personal income taxes of $36.7 billion over four years. The coalition government also cut the company tax rate from 36 per cent down to 30 per cent.

When we came to government, we did something that those opposite have trouble doing. When we came to government, we said that we would get rid of the carbon tax. We said that we would get rid of the mining tax. When those opposite railed against the GST when in opposition for all of those years, did they change it? Did they roll it back? No, they rolled over on rolling it back. What we know from those opposite is that they crow about all these things in opposition, but if they ever get the chance to do anything about anything that they have banged on about in opposition, they do not follow through. But when we say we will get rid of taxes, that is what we do. We got rid of the carbon tax. We got rid of the mining tax. And, on top of that, we have also got rid of the bank deposits tax that was introduced by the now shadow Treasurer when he was Treasurer. So this government gets rid of taxes. We reduce taxes, because we know a better tax system is going to encourage Australians. It is going to back Australians. We have form on cutting taxes and reducing taxes. When we talk about a better tax system, that is what we are about achieving. When it comes to tax reform, those opposite are on a smoko.